With Business Insolvencies expected to rise in the UK in 2018 according to the latest Insolvency Service statistics, Businesses need to be on guard more than ever against late and non paying customers.
Only last month, research by Commercial Data specialists Dun & Bradstreet highlighted that continuing late payment is putting 58% of British Businesses at risk.
Lancashire-based business debt collection specialists Federal Management conducted a survey with their existing and new clients to shine a light on the most common excuses used for non payment.
The excuses ranged from the standard payment delay tactics right through to the downright disrespectful.
Top 10 most common excuses for late payment:
- The cheque is in the post
- Not received any invoices
- Invoice is disputed
- Account signatory is absent from work
- Financial controller ‘not available’
- Waiting for payment from their customer before they can pay
- No payment run not till the end of the month
- Our payment terms are 90 days
- The invoice has already been paid
- Technical difficulties with accounts system
Business experts have urged SME’s to adopt a more pragmatic approach when faced with non-paying customers.
Chris Spencer from Federal Management said “These surveys shed a light on the continuing problem of late payment in the UK”
“Small Businesses can often be fearful of taking Debt Recovery Action for fear of alienating their customer but our philosophy is that No Business has ever lost a customer simply because they were required to pay what they rightfully owe”